EXECUTIVE SUMMARY

Marketing has a broad scope in any industry. Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication and development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is a key factor in business success. The marketing function not only deals with the production and distribution of products and services, but it also is concerned with the ethical and social responsibility functions found in the domestic and global environment. Marketing strategy brings efficiency and acceleration in the growth of the company. With the help of marketing strategy company can create good control over market activity marketing strategies have become the essential part in any industry. No organization can survive without proper marketing strategy in the competitive market. Marketing strategies involve pricing strategy, promotion strategy, distribution strategy, product management, market analysis, positioning strategy. With the help of these strategies efficiency can be brought to the business activity. Companies can achieve their desired goals using the marketing strategies. The reason for carrying out survey was to know the potential of Ferro Alloys market all over Vidharbha. Purpose of this project is to understand marketing strategy of the company. To study various marketing activities such as pricing strategy, promotion strategy, distribution strategy, positioning strategy. To understand satisfaction level of customers about rates and quality of the company products and analyses the position of the company. Survey was conducted with the existing customers of the company as per the list provided by the company personnel. The scope of the research is limited to the Vidharbha region.

TABLE OF CONTENTS
SR.NO CHAPTER 1 TITLE INTRODUCTION 1) Introduction of MEL 2) Introduction of Ferro Alloys Sector 3) Future plans 4) SWOT Analysis 5) Technology Development & Performance 6) Departments REVIEW OF LITERATURE 1) Objectives of the Research 2) Scope & Limitation 3) Research Methodology 4) Research Design 5) Hypothesis MARKETING OF FERRO ALLOYS IN MEL 1) Product Range of MEL a) Finished Products b) By Products 2) Organization Structure 3) Marketing Strategy 4) Marketing Activity 5) Distribution of Products a) To SAIL b) To Non SAIL 6) Sales Procedure in MEL 7) Customer Services CONCEPTUAL BACKGROUND OF STUDY Marketing Research DATA ANALYSIS & INTERPRETATION FINDINGS & SUGGESTIONS CONCLUSION BIBLIOGRAPHY & ANNEXURE PAGE NO 4 6 8 9 11 12 31 32 33 34 35 38

CHAPTER 2

CHAPTER 3

39 40 41 42

CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7

47 48 51 56 70 73

CHAPTER-1

CHAPTER-1 INTRODUCTION
1. INTRODUCTION OF MEL Maharashtra Elekrosmelt Ltd is a subsidiary company of SAIL (Steel Authority of India Limited). This is a public limited company established in 27th February 1974 under the companies Act 1956. The plant is located 5km. away from Chandrapur and well connected by railways. The area of the company is about 550 acres. The company was founded to use the resources of the region of Chandrapur district and for the growth and development of the Chandrapur region. MEL was promoted by state industries and Investment Corporation (SICOM) and DevelopmentCorporation of Vidharbha Govt. of Maharashtra undertaking. MEL is manganese based Ferro and Silicon Alloys producer in the country. MEL produces good quality Ferro manganese in the country, so it has a good demand for Ferro manganese from steel industries. The finished products are provided as the raw material for Bhilai Steel Plant (BSL), Bokaro Steel Plant (BSP), Raurkela Steel Plant (RSP) and Durgapur Steel Plant (DSP).90% production is supplied to above mention area and 10% production is supplied to the other companies. Maharashtra Elektrosmelt Ltd.is a Government Company. Steel Authority of India Ltd (SAIL), a Government Company, is holding 99.12% in shares of MEL and that is why MEL falls under the category of Government Company. The Company is managed by the Board of Directors appointed by the Holding Company (SAIL). Being a Government Company, it is subjected to the control of Government of India through the respective Ministry of Steel.The Board of Directors consists of Chairman, three Directors from SAIL and one Independent Director appointed by the Holding Company and one Nominee Director appointed by the Govt. of Maharashtra.

The company has given the importance to the corporate social responsibility. To insure corporate social responsibility the company is doing some social activities in the chandrapur area. The company has dug some bore wellsin some villages of chandrapur region. Plantation activity is done by the company in chandrapur area. The company is providing industrial training programme to the students. These and many other activities are being done by the company to be a socially aware company. The product range of the ISO 9001:2000 certified company includes high carbon ferro manganese, silico manganese and medium and low carbon ferro manganese. The manufacturing unit has an installed capacity of 100,000 MTPA high carbon ferro manganese. A 4.2 MW Power Plant is being operated using furnace waste gas as fuel. Recent awards include the Ispat Suraksha Puraskar. An industrial safety awarded for no fatality during 2005 and 2006 received in December 2007. With 30% share in the domestic market for manganese based ferro alloy, it caters mainly to the requirement of its holding company, SAIL. Under a conversion contract, major raw materials including manganese ore and coke are provided by SAIL conversion into ferro alloys for which changes are paid to the company based on negotiated rate on yearly basis. Merger of MEL with SAIL:Maharashtra Elektrosmelt Ltd. was physically taken by SAIL on 1st Jan 1986 but legal transfer of 82% of the shares was finalized on 18th Oct & the company became the subsidiary of SAIL from that day. The process of merger of MEL with SAIL started in 1986. The decision of merger was taken by the steel ministry and by the SAIL authority. The process of merger of MEL with SAIL was completed in April 2006 and culminated with the receipt of the final order from the Ministry of Corporate Affairs on June 14th 2011 the final order of amalgamation of MEL with SAIL has been filed with the Registrar of Companies at Delhi and Mumbai. The decision of merger was taken between the top management of SAIL and MEL and official of the Ministry of Steel including the Union minister for Steel, Shri Beni Prasad Verma.The minister said company is under the steel ministry are taking steps to reduce production costs despite price rise production are raising all rounds and there has been a marked growth in profit earning the country is expected Vision Sustaining the leadership position through value based services Mission To establish ourselves as the first choice of our customers with focus on value creation for all other stakeholders
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2. INTRODUCTION OF FERRO ALLOYS SECTOR Operating with around 62 per cent of installed capacity, the Ferro alloys industry in India is struggling to raise efficiency and economic health of producing units due to competitive imports. With a production capacity of 4.65 million tonnes, the industry is sufficient to meet Ferro alloys requirement to produce more than 120 million tonnes of steel per annum. Ferro alloys' production in India has shot up to 2.87 million tonnes in the financial year 2010-11 as compared to 2.63 million tonnes in the previous year. Despite over 9 per cent rise in domestic production, the import surged to set the new record this year. Uses of ferro alloys:Ferro alloys are used to make ferroboron, ferro powder, battery, electrolytic,manganese dioxide,agricultural, water treatment, sulphar dioxide metal coating circuit boards. Apart from this ferro manganese is used to make industrial products like hot rolled coils, cold rolled coils, and galvanized sheets, bar billets, molten iron and pig iron. Ferro alloys are used in production of mild steel, carbon steel, special alloy steel and stainless steel in the country. India's steel production is increasing every year; thereby the consumption of ferro alloys is also increasing. The industry has enough capacity to produce ferro alloys required for domestic steel industry. However, certain basic raw materials, i.e., ores viz., manganese ore, chrome ore, roasted molybdenum ore and concentrate/moly oxide, tungsten ore, wolframite ore, scheelite ore, nickelOxide, vanadium ore, vanadium pent oxide, ammonium. Manganese Slag:Ferro manganese slag is generated as a byproduct while producing ferro manganese. For every tonne of production of ferro manganese, approx. one tonne of slag is generated. This slag is consumed in the production of silicon manganese. The consumption of such slag for producing one tonne of silicon manganese is 600 kg. Pertonne of silicon manganese.

Generally, ferro manganese is produced on high MnO slag practice basis, i.e., above 38% MnO in slag. However, considering the availability of low Mn/Fe ratio of manganese ores in the country, ferro manganese producers are unable to produce ferro manganese with such high MnO2 slag. The availability of manganese ore has become very critical in the country, and the industry has already started importing manganese ore in large volumes. The industry produces 30% of manganese alloys in the form of HC ferro manganese the rest 70% is silico manganese. Therefore, availability of slag is very low for producing silico manganese. The average consumption could be considered as 600 kg of ferro manganese slag per tonne of silico manganese. The production of HC ferro manganese remained volatile in the last three years. The total output in India was recorded at 390,000 tonnes in 2010-11, a significant rise from 341,883 tonnes in the previous year. The demand of ferro manganese slag works out to around 750,000 tonnes, whereas considering the projected increase in steel production and the demand of silico manganese. World demand for manganese and ferro alloy products depends directly on the outlook of the steel industry. Over 90% of the worlds production of manganese is utilized in the desulphurization and strengthening of steel.

3. FUTURE PLANS To achieve the objective of the corporate plan 2012 studies were carried out for developing infrastructure facilities and equipment for implementing layer casting of ferro alloys mechanization in order to improve the labour productivity and yield. Installation of 45 MW Sub-merged Arc Furnace to produce around 90, 000 tonnes of High Carbon Ferro Manganese or 70,000 tonnes of Silico Manganese, with an investment of around Rs.185 crores at Chandrapur. Installation of plant wide communication network system to improve in MIS (Management Information System) Installation of standby dust collection system at SAF-2 to improve gas availability to power plant. Concreting of ferro alloys plant by 2000 Square Meters for improving the metallic yield. Setting up of a 4.00 MW (furnace gas based) Power Plant with an investment of around Rs.38 crores is also envisaged. It has also been planned to put up a Captive Power Plant to meet total requirement of power of the Plant, in near future Installation and commissioning of atomized water spray pump for regular spraying of water for controlling fugitive emission on plant roads. Partial replacement of charcoal by coal. Use of manganese ore from Gua Mines of SAIL. Electrification of MEL Railways Sidings.

4. SWOT ANALYSIS OF THE COMPANY SWOT analysis is the approach by which proper condition and position of the company can be analyzed in a proper way. After the analysis the firms can take the right decision to lead ahead. SWOT analysis is an environmental scanning these are internal environmental scanning and external environmental scanning. Strengths: There are abundant supplies of natural resources which are continuously proving to be beneficial to the organization. There is dedicated work force in the MEL. Any organization can easily respond to the changes when there is a dedicated work force in the company. Products of the company have gained good reputation in the minds of the customers. The products of the company are ISO certified. MEL has a good control over cost reduction technique. With the help of expansion plan and after installing new technology in the company, the company will be able to reduce excessive cost in future. The company has an exclusive access to high grade natural resources this is a most beneficial factor of the company. The company is well connected by rails and roads. So it has a good distribution network. There is a power plant in the organization so the company can fulfill its power need to some extent. Weaknesses: The company has to bring the raw materials from the long distances. So this thing can prove to high transportation cost. Natural and accidental separation of workforce can be another weakness for the company. The prices of the company for Ferro alloy are costly. So customers can choose another supplier for their need of Ferro alloy. So the company should be little flexible to gain much market share.

Opportunity: Growth in the GDP and the growth in the purchasing power of the people lead to the new opportunity in the manganese industry. Because of the new innovation there is a great change in the technology. There is always increasing demand for the manganese. With the help of such technology there will be tremendous growth in the production line. In this way the company will be able to fulfill the demands of its customers. The changing infrastructure in the country poses a high demand for the manganese. Growth in the steel industry is a great opportunity for the manganese industry. Threats: The production of the company is depending on the supply of cooking coal and there is excessive use of charcoal in other industry also. When there will be lack of availability of cooking coal, it will lead to the shutdown of submerged arch furnace. Another threat is china is making fast progress in the production line and cost reduction technology. There is always threat of inflation for the industry which can lead to downward demand for ferro and other manganese.

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5. TECHNOLOGY DEVELOPMENT AND PERFORMANCE Technology development in the field of ferro alloys & raw material preparation has been made as follows: Production of low & medium carbon ferro manganese through silico-thermic route. Lime is produced for the use of paper industries as a part of diversification. Predestining of raw material in binges with the use of furnace gases. In order to censor energy automation of plant operation is done which all reduced the power cost substantially. All the products and process of MEL of ISO standard because of ISO 9002 certification to the whole company. A 100 TPD high pressure sinter plant was installed with active association of R&D center fir Iron & steel of SAIL. Performance: Since 1986-87 the growth in the production ferro alloys achieving almost 110% of capacity utilization. At international levels Techno-Economics parameters comparable. MEL is committed to excellence in all spheres of its activities with special emphasis on customer satisfaction.

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6. DEPARTMENTS List of Departments: 1) Safety, Fire Engineering. 2) Raw MaterialYard 3) Product Handling Yard 4) Furnace Operation & Control 5) Instrumentation/ Electrical 6) Finance & Account 7) General Stores & Weigh Bridge 8) Civil Department 9) Workshop & Yard Maintenance. 10) Laboratory 11) PPC 12) SP-I & SP-II 13) Material Management 14) Maintenance (Mechanical & Utility) 15) Personnel Department

1) SAFETY DEPARTMENT The importance of industrial safety is realized because every year millions of industrial accident occur which result in either death or in temporary and permanent disablement of the employees and involve a considerable amount of cost such as resulting from wasted man hours, machine hours etc. The safety of men and machine is at stake in this era of liberalization and highly competitive industrial atmosphere as per the Indian industry for its survival has to utilize its resources mainly men and machine in an optimum way to ensure maximum labour and machine productivity. Hence, it is imperative for every organization to the vigilant and ensures that its employees are prepared not only to accept the new challenges with the change in technology but also those unsafe conditions are not created due to this change. The very first step of MEL in achieve this objective is exposure of concerned employees to scientific and structural training program to create awareness and motivates them to attach importance to safety. Function: Knowing hoards in manufacturing and processing of operations and explaining them to workers in terms of official safety rules designed by company. To make aware the workers how to obtain and from where to obtain, the safety equipment. Also teaching them practically how to use the safety equipment.
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To investigate in accident and to discover the unsafe condition and unsafe practices that caused the injury, further applying correcting actions such that accident in future to be prevented. Information or data regarding the works progress in collected by the department and it is interpreted by comparison with the present level of performance. Action is taken if the progress indicates deviation from set targets and if corrective action fails to bring out the desired results, re-planning is essential. Activities:It provides the daily production reports to ED, DGM (W), AGM (P), AGM (F&A), CS (P), AGM (MM), AGM (MS&FAD) Nagpur office and corporate office. It gives periodic information regarding plant status, plant activities, breakdowns, shutdowns to ED and DGM. It provides statistical information regarding raw materials, operations and maintenance areas. It prepares fortnightly, monthly reports for corporate offices. Preparation of emergency plan, contingency plan and disaster plan. It coordinates between production departments and survives department for maintenance of system during breakdowns and shutdowns. Provides information regarding an accident, if occurred. 2) RAW MATERIAL YARD To meet the demand of production raw materials are brought from various places and such materials are stored in raw material yard. Such raw materials are broken and later on it is sent to the bunker after screening. Then it is used in the furnace as per the requirement. Raw materials:1. Mm ore. 2. Coke. 3. Dolomite. 4. Lime stone. Activities of raw materials yard:1. Collection of raw materials. 2. Corresponding with railway. 3. Bill making. 4. Keeping records of raw materials. 5. Preparation statements of materials. 6. Making work orders. List of the mines from where the raw materials are brought:13

1. 2. 3. 4. 5. 6. 7. 8. 9.

Bhilai steel plant. Balaghat mines. Ukova mines. Gua mines. Khapa mines. Charcoal from Ballarpur. Tumsar. Gua. Bhilai steel plant.

3) PRODUCT HANDLING YARD Procedure for handling, storage, packaging & dispatches of product:Purpose:The procedure is issued for performing activity is of receipt handling, storage, packing & dispatches of products. Scope:This procedure covers the following activities pertaining to HCFeMn&SiMn/LCMn. a) Handling (receipt, breaking) storage identification, protection and dispatches. b) Recovery from slag, slag mix and metal dust. Procedure for receipts handling & storage of product:1. HcFeMn, SiMn received from SAF & LC/MCFeMn received from EAF shall be weighted & unloaded at independent plot ferro handling. 2. The composite chemical analysis report of a days production is received from central laboratory. 3. Laboratory of third indicating status of product as conforming or nonconforming. 4. The details of production & analysis report are recorded in daily production register. 5. Production is allotted to contractor for processing as per requirement. 6. After the completion of breaking size, analysis of broken material is carried out. 7. After checking the sized product is handpicked& stacked on concrete platform on respectively size dumps. 8. After completion of size product picking & stacking the left over metal dust & slag handling shall be done. 9. To initiate purchasing cycle at the appropriate time so that material required and never out of stock. 10. To check the bin lard balance with the physical quantities in the bins. 11. To coordinate and cooperate to the full extent with the purchasing, manufacturing inspection and production planning and control department. 12. To record and update receipts and issuing of material.

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4) FURNACE OPERATION In MEL there are two types of furnaces which are used for production:1. SAF: - Submerged Arc Furnace (two in no.) 2. EAF:- Electric Arc Furnace SAF: - it is used for the production of HCFeMn& SiMn. EAF: - it is used for the production of LCFeMin. Operation:The raw material is transferred to the bunker house from the ground hopper. After completing the screening, crushing operation in bunkers house it is transferred to the furnace bins. There are two type of SAF, SAF-1 & SAF-2. There are 8 bins & 3 electrodes in SAF & supply is provided. The raw material from the bins is the inject in to the furnace where the electrodes are merged. Hence this furnace is called arch furnace. The 22MW power is consumed by the electrode in an electric arc furnace & its temperature is near about 1700-2000C. The raw material is converted in molten state. Hence for one tapping process it takes minimum two hours. The coke is used in this process as a reducing agent. Here the reduction reaction takes place & in this reaction Co gas is produced. This gas is well used in the production of electricity for other uses of MEL in power plant which is across 4.2 MW in MEL. In power plant sintering & lime kiln is lesser than of molten material so the slag floats on the top can be recovered. After the cooling process material is transferred to PH Yard. The furnace generates very large heat. So it cooled by flowing the cold water through the pump which covers the furnace. INSTRUMENTATION ANDELECTRICAL MAINTENANCE DEPARTMENT Machinery and equipment are the most useful and valuable in the organization. Such instrument cost lot more and the downtown can be expensive as a part of the company. So such valuable machineries should be maintained in a well order. Goals of plant maintenance:1. To achieve minimize break down. 2. To keep plant in a well order. 3. To keep instruments in a well order to meet the organizational objectives. The job of maintenances and instrumental department is to keep in control of various parameters such as pressure, temperature and flow etc. to get the desired level of functioning of the equipment as well as the quality of product. Such functions are managed with the help of various meters.
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Some important things about instrumentation department:Equipment like electrode slipping device, IMVA furnace tilting device, the ramp couples, scale hopper, gas analyzers etc. cannot be thought of being operated without the help of instrumentation. Instrumentation department plays a vital role in smooth functioning of the process in the plant. In achieving the goal of customer satisfactionthe role of electricaldepartment is of prime importance because of its monitoring and controlling function. Which enable the production and other departments in achieving products of satisfied standards and quality.

FINANCE& ACCOUNT During the year 2009-2010 the Company has achieved a turnover of Rs. 396.41 crores (including conversion income of Rs. 290.79 crores) as compared to Rs. 291.54 crores (including conversion income of Rs.241.80 crores) in the previous year. The Company has achieved an improved performance in terms of financial results and earned a net profit (before tax) of Rs. 55.87 crores despite the increase in power tariff and employees remuneration and benefits. The financial results are as summarized below: 2009-2010 (Rs.in Cr.) Turnover (Gross) 396.41 Operating Profit/loss 57.89 Interest 0.11 Depreciation 1.91 Net Profit Loss (-)before Tax 55.87 Income Tax Provision 19.55 Net Profit/Loss(-)after Tax 36.32 Proposed Dividend 7.44 Tax on Proposed dividend 1.26 2010-2011 (Rs. In Cr.) 291.54 30.07 0.16 1.70 28.21 9.71 18.50 4.80 0.82

Considering the consistency in performance of the Company, the Directors have recommended dividend 31% of net profit subject to approval of the Shareholders. A sum of Rs.3.65 crores has been transferred to the General Reserve during the year.

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5) GENERAL STORES & WEIGH BRIDGE General store is the most important of any organization. It performs the vital role in the organization. There is function for storing of spree consumable &refectories. Total 13,054 items are recorded in store master list which are divided into 32 groups & maintain stock card for each item. General store department prepared inventory report summary Group Wise & detail & submit according to department. After PSV store prepare following report: 1) Nonmoving items list. 2) ABC category analysis. 3) Idle asset list. 4) Insurance item list. Store department maintains 109 items out of 13,054 as AP items which are fast consumable. Store department controls the stock of AP items. Store department is processing the purchase indent (PI) on annual requirement basis for procurement of AP (automatic procured) items. Non Automatic Procurement:Non AP items which are as & when required basis for the procurement of non AP items user department raise the PI when they require the materials & the same process through indent screening committee (ISC). This Non AP & PI also forward to the purchase department after an approval of ISC. 6) CIVIL DEPARTMENT 1. The main function of civil department is to maintain the plant shed roads, buildings etc. 2. They undertake the new projects for construction. 3. MEL quarters, hospitals, bore wells, are also constructed and maintain by the civil department. 4. The furnaces internally consist of the layer of refractory bricks, which can withstand with higher temperature about 2000C. These refectory bricks are also replace by these department after 5 or 6 years. 5. The civil department makes the survey of all the departmental buildings.

7) WORKSHOP DEPARTMENT The workshop is designed to carry out various jobs such as electrode causing fabrication, water jacket fabrication, repair work of chain pulley blocks, box making,
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manifolds for water cooling systems making hooks, repairs of pump parts, vehicles and other major and minor. Work required by mechanical and services departments of the plant etc. The maintenance of various machines available in workshop is also taken care by workshop division. Work order procedure:The department who has to carry out any kind of work, thought mechanical workshop, submits work order form, properly filled and complete in all respects to workshop. The work order form consist the details about urgency of work, specification and discrepancies (if any) expected date of completion of work etc. As the work order is received by workshop, it is assigned certain job no. it is recorded in work order register against the job number. Considering the urgency of work and the manpower available, the job is executed and the same is recorded in work order register. The concerned department who raised the work order is informed about the completion of the job. In workshop a logbook is maintained for registering daily activities carry out by department. A monthly progress report is prepared at the end of every month, which shows the works done during that month. Workshop is equipped with following facilities:1. Lathe. 2. Shaping machine. 3. Pillar drilling machine. 4. Power hack sane. 5. Pedestal grinds. 6. Shearing machine. 7. Bending machine. 8. Rolling machine. 9. Punch press. 10. Hydraulic pipe bending machine. 11. Welding machine. 8) LABORATORY The job of the laboratory department is to insure quality of the product and specification of chemicals in the products. It performs the screen analysis & sample testing for sample preparation. Scope:18

1. 2. 3. 4. 5. 6. 7. 8. 9.

Analysis of raw material before use in production process. Product meant for dispatch. Jigged product screen analysis as per desired size. Raw material, product, metallic by product are required for the sample preparation. Determination of moisture content of Mn ore & coke. Chemical analysis of FeSi production process. Chemical analysis of Fe Sio2 Al2 in Fe ore. Chemical analysis of CaO, MgO, SiO2 in limestone dolomite. Analysis of loss of ignition content in lime.

Lime Kiln:For the production of medium carbon FeMn the lime kiln produces lime from limestone which acts as raw material. MEL has two limes kiln one having the capacity of 7 tonnes per day and other having 4 tons per day. In kiln limestone is heated at 1000C so the lime is produced. 9) PRODUCTION, PLANNING & CONTROL DEPARTMENT Introduction:Production is nothing but the transformation of raw materials into finished products. Planning is looking ahead, anticipating possible difficulties and problems that may arise during production and deciding in advance after taking into consideration the difficulties that how the production in a best way to be carried out. The control phase makes sure that the planned production is constantly maintained. The PPC department plays a very vital role in the organization. It is the heart of the company as its proper functioning is necessary in achieving the goods and success of the company. Functions:1. Forecasting:-it is the estimation and determining the type of work, volume or quantity of work, nature and quality of the work. 2. Material control:-involves determining the requirements and wanted of materials for production. 3. Process planning finding out the most economical way of carrying out the work. 4. Assigning the work to manpower.

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10) SINTER PLANT-I AND-II Sintering Plant-I:It has a production capacity of 50 tonnes per day. It utilizes fines of Mn Ore and Coke collected from screen house. Sinter plant is a mechanized plant consisting of raw material, loading bucket elevators, conveyor belt, mixing drums, vibratory feeders, continuous traveling grate type sinter strand, ignition hood with all burner, sinter breaker, sinter wolver, sinter screen, suction fens, cooling arrangements, finished sinters hopes, etc. Sintering Plant-II:High pressure sintering is carried out with the supply of compressed air from top of the led. The pressure drop is created by the surplus air above the bed under high pressure, which helps in intensification of the sintering process & overcome most of the constraint faced in conventional sintering with appreciably high vertical speed of sintering. Sintering Process:Sintering is to heat a mass of fine particles for a prolonged time below the melting point to cause conglomeration. The ore fines, fuel fines recycle fines and water is mixed in a definite proportion. This mixture is rolled in drums or discs to form mixer pallet/nodules. Mix is fed to sinter strands. Top layer of fuel is ignited while maintaining vacuum below sinter bed. Ignition is continued till top layer reaches incandescence. Under vacuum air is drawn through sinter bed. Heat generated by fuel fines causes surface fusion of grains. Ore tines are thus fused together ultimately the coke. Coke is than crushed into desired size and fines generated are screened out. These fines are recalculated for subsequent sintering. Operating Process of Plant:1. Raw material receiving & storing:- in sintering raw material required are Mn ore fines, coke breeze & lime stone. The control panel operator has to select the material loaded in ground hopper through selected switch. 2. Crushing Screening and Storing:- the material stored in hopper and to be crushed, screened and stored in bins. 3. Proportioning & storing:- proportioning & mixing of raw material is carried out through control panel. In this mixing water is also added to raw material. The final mixed product is stored in surge bins. 4. Sintering:- for sintering process major activities performedinclude
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a. Charging of earth level & sinter raw mix in sinter pot. b. Ignition & sintering raw mix. c. Dispatching of sinter cake. 5. Discharging, Crushing & Cooling of sinter cake:- all the operation of sinter dispatch section is being controlled from control panel. The sinter dispatch operation cannot be started if the return sinters proportioning bin indicator high level of material in it. 11) MATERIAL MANAGEMENT To keep the data of all the materials and to keep in aliening need and want of any materials in the organization the material management is important department. Objectives:1. To keep the systematic records of the materials. 2. To assess the price of materials in the organization. 3. Provide justified information. Scope:The scope of material management is indeed vast. The material management keeps the record from the small to large things. This department keeps the information from the low things to organizational needs. Such as pen, pensile, scale, raw materials etc. Function:When in the company any department wants some instruments or equipment, they will report to the material management department then material management department report to the finance department. The particular department has to provide justified information to the material management department. After proper specification the final decision is taken by the management. In the final decision the finance department will take the decision about purchasing. If there is a need for the equipment, the equipment is bought. If the financial condition of the company is not good and the equipment is carrying out its function in a justified manner the decision to buy is postpone by finance department.The material management department has to give justified reason for that particular thing to the finance department. In this way material management plays role of mediator in buying something in the organization.

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12) MECHANICAL MAINTENANCE DEPARTMENT Introduction:In any industry equipment and machinery plays a very important role in the total production process. Machines and equipments costs a lot more money and therefore their damages are very expensive. Again in the process of production if any damages or downtime occurs it becomes much more expensive as it hampers the production. For this reason it is vitally important that the plant equipment and machinery should be properly maintained. It is a known fact that an improperly maintained equipments requires expensive and frequent repairs because with the passage of time all machines and equipment wear out and need maintenance to function properly again the un-properly maintained equipment gives rise to frequent breakdowns which leads to loss of production because which any equipment or machinery associated with furnaces or with any other production unit goes out of order. The production process either gets stopped or retards. This result in a lot of several thousands of Rupees per hr. of production. Again it creates problems time and split material because of the sudden stoppage of the process, which must be avoided. It is the maintenance department which removes all the obstacles and difficulties in the way of production and in turn helps the production department in achieving the production targets as well as keeping safe working conditions and pollution free environment in the plant. Mechanical maintenance department in MEL looks after the maintenance of mechanical equipment and mechanical systems associated with two 33 MVA SAFs and one MVA EAF in FAD. High pressure sintering unit and workshop. Maintenance of some important mechanical equipments and mechanical equipments associated with system like furnace shell and roof cooling system, furnace changing system electrode holding and slipping system, furnace tilting and electrode slipping system in LMVAEAF, Range Mat handling, crushing and screaming system in HPSU, maintenance of various machines at workshop maintenance of mud gum, GCP, cranes and water jackets. All is done by mechanical maintenance department.

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Objective and Functions of MechanicalMaintenance Dept.:1. To achieve minimum breakdowns and to keep the equipment in good working conditions. 2. To ensure availability of NV/CS and arrives for continuous running of furnaces. 3. To keep NV/CS and other facilities ready to be used at their option capacity without any interruption. To Achieve this Objective:1. Routine schedule checkups of all mechanical equipment and facilities are carried out by this department to examine their conditions to check for needed a repair which ensures the safe and machinery. 2. Mechanical maintenance department carries out the maintenance replacement and minor installation work of equipment. PERSONAL DEPARTMENT Employees are the most useful asset in the company. So there should be proper system to manage and compensation in the company, personal department does the job of employee handling in the company. It works for employee planning, selecting, recruiting, controlling, managing, compensation, appraisal of performance. Objective and function:1. Increase efficiency. 2. Compensation in a proper way. 3. Increase morale of employees. 4. Proper management of performances. 5. Procurement of adequate work force. 6. Maintaining employee safety. 7. Maintaining employee health. 8. Maintaining the records of the employees. 9. Maintaining the industrial relation. 10. Check the time office function. 11. Providing training to the employees.

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Chapter-2

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CHAPTER-2 REVIEW OF LITURATURE

1. OBJECTIVES OF THE RESEARCH 1. 2. 3. 4. 5. 6. To study and understand the marketing strategy. To study marketing position of the company in the market. To study various products offered by MEL. To study the customers satisfaction about rate and quality of products. To study the logistic system adopted by MEL. To analyze and interpret marketing stability and overall performance.

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2. SCOPE AND LIMITATION Scope:Research was limited to the certain parts of Vidharbha only. The companies that were visited wereas follows: Lloyds Steel Plant, Wardha. Utam Ghalva Metalics, Wardha. Mahalaxmi Steel Plant, Deoly, Wardha. Wheels India, Deoly, Wardha. Team Ferro Alloys, Nagpur. VIPRA Ferro Alloys, Nagpur. Team Ferro Alloys, Buttibori Nagpur. Jindal Stainless Steel, Chandrapur. Sidhabali Ispat Ltd, Chandrapur. Gopani Iron & Power, Chandrpaur. Research emphasis was only on finding customers priority on purchasing their products for MEL products and other competitive products. It includes finding position of MEL products in respect to other competitors & necessity to formulate marketing mix of the company if any. Limitation: The study is based on the perception, ideas and preferences of the respondent, which are complex in nature and depend upon subjectivity of the individual. Many times there was lack of cooperation from respondent for research. The research was carried out in certain parts of Vidharbha only therefore finding and suggestion are limited to those parts only.

26

3. RESEARCH METHODOLOGY Research methodology is the process which helps in selecting the tools to achieve the objectives. Methodology used in this research is the survey of the customers who require Ferro alloys for mixing in their product. Sources of data collection:Primary data:Data obtained from the first hand by the researcher is called the primary data. Here the main source of primary data collection was interviews, discussion and interaction with customers by using the questionnaire. Secondary data:Secondary data refers to the data available in some form or another and may include the result of the previously performed research or the available material such as newspaper, reports may be from the internet. Various sources of secondary data used in this research are: Web sites. Books. Manuals of the company. The Methodology Consist of: Need and objective of research. Collection the facts/data. Analysis of the data. Conclusion and Solution.

27

4. RESEARCH DESIGN After identifying problems and sources of data the next step is to prepare research design. It facilitates research to be efficient as possible yielding maximum information. Research Approach:Survey method was used to collect data. List of existing customers was provided by the company. Approach used was to take prior appointment of customers and then meet them or in some cases meet the customers directly without appointment and then fill up the questionnaire. Research Instrument:It is a tool used to collect data from sample. A structured questionnaire was used as research instrument in this project. A questionnaire consists of both close ended and open ended question to make analysis easy and respondent to feel free to answer the questions. Sampling Design:A definite plan developed to obtain a sample from a given population is called sampling plan. Sampling Procedure:Judgmental sampling of all the customers as per the list provided by the company was covered from various parts of Vidharbha. Sampling Size:- 10 Companies. Sampling Units:-Sampling units were geographical. An industry and its employee were considered as sampling unit.

28

5. HYPOTHESIS 1. The company has good control over marketing strategy. 2. The company is in the good position in the market and it has good quality control. 3. Customers are satisfied with products. 4. It has control over logistic system.

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29

CHAPTER-3

30

CHAPTER-3 MARKETING OF FERRO ALLOYS IN MEL

Introduction:Maharashtra Elektrosmelt Limited is the largest producer of Ferro alloys namely high carbon Ferro manganese, Silicon manganese & medium carbon FeMn. Apart from the above main products marketing department looks after sale of left out raw materials idle assets, stores, surplus items, scrape, coke by products etc. Ferro alloys market at present in no more a seller market. Lookinginto the ensuring Indigenous & International competitive market. Ferro alloys industry need to strive for its survival through affective cost control measures besides quality based production. The marketing strategy of MEL is to satisfy the requirements of its customers to maximize possible extent i.e. both the SAIL Non SAIL market & the price of the products are also fixed on monthly basis for non SAIL customers. To evolve the non SAIL market & domestic market number of steps have been taken such as personnel visit to the buyer in various regions & also requirements from domestic market are analysis & according to open sale terms & conditions are executed. MEL also provides better customers service to the maximum possible extent according to the requirements & quality. MEL products costlier as compared to the competitors but they are also giving the products of better quality. So demand of MEL products are likely to be stable in the market & MEL is ISO-9000 certified company hence quality of products are assured. The marketing in MEL mainly aims to satisfy the customer & give feedback to its complaints.

31

1. PRODUCT RANGE OF MEL MEL mainly deals in marketing of the Ferro alloys i.e. finished products which are used in the production of steel in steel plants. But apart from the Ferro alloys MEL also deals with the marketing of by products & scrap obtained at the time of production. a. FINISHED PRODUCT:1. High carbon Ferro Manganese (HCFeMn). 2. Medium carbon Ferro Manganese (MCFeMn). 3. Silicon Manganese (SiMn).

BY PRODUCTS:1. Coke. 2. Fine dust. 3. High MnO slag. 4. Low MnO slag. 5. Khad waste. 6. Granulated slag. 7. Scrap. Scrap obtained during declining of furnace. Maintenance other form shut down units, other departmental unit wise yard, utility, Lime Kiln sintering plant etc. is disposed off through section.

b.

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2. ORGANIZATION STRUCTURE

CHIEF EXECUTIVE DERECTOR

GENERAL MANAGER (P&A) INCHARGE

GENERAL MANAGER (WORKS)

GENERAL MANAGER (FINANCE)

Asst. GENERAL MANAGER (MARKETING)

MANAGER (MARKETING)

STAFF

33

MARKETING STRATEGY The marketing strategy is as follows:1. Price fixation of finished & by product for non SAIL customer is being done on 1st of every month based on market review. 2. Then the prices being communicated to all respective customers by telephone, fax or email in every month. 3. Searching new buyers & sellers & contact to them regularly. 4. Matching the products to customer needs & desires. 5. Determining the optimum price. 6. Tenders are also carried out for selling of finished product. 7. Analysis of sales. 8. MEL sales the Ferro alloys to SAIL as per the regular contract. 9. The sale cum delivery order being received by marketing department specifying the terms, condition, rules & regulation. MARKETING ACTIVITIES The marketing activity is very much important for proper utilization for marketing strategy. Hence in MEL so many marketing activities are being carried out these are given below. Price fixation by the committee of management in every month & also analyses the demand of product. Then sales in the market by tender method & also direct sales procedure. Mainly the sales of Ferro alloys depend upon the market of steel & hence it changes according to market condition. Price fixation of finished products& by products:Price fixation of undersize products, prime size product, by product is done in following ways. 1. Price fixation by management:- The fixation is recommended by the committee consisting of members of each department i.e. Marketing, Finance, Production and Product handling yard. The market demand, production, quality of production, utility of product market scenario, prices of competitors are analyzed by the committee members. The price of product is recommended for approval of competent authority. 2. Price fixation by floating enquires:- If there is change over from one type of product to another then there is necessary of floating enquiries. The price of product fixes after the enquiries of off-grade material and price of such product. 3. Price fixation of product going to SAIL plants:-The variation in production cost revised the prices and prices fixation is done by the negotiation between MEL marketing division executive and SAIL commercial executives. The
34

SAIL commercial division placed the purchase order annually & subsequently the material schedule is prepared and dispatched.

35

3. DISTRIBUTION OF PRODUCTS MEL is subsidiary unit of SAIL hence near about 90% production of Ferro alloys are supplied to the SAIL. The finished product obtained from furnace is being undergone for crushing for getting the required size of the product and then it is divided as per the size of the material. Generation size of the different Ferro alloys their percentage of generation is given as follows:High carbon Ferro Manganese (HCFeMn) Size 40-100mm 25-50mm 12-25mm 3-12mm 0-3mm Total Yield Percent Generation 80.40% 9.10% 3.80% 2.90% 0.80% 97% (3% loss)

High Carbon Ferro Manganese

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 40-100mm 25-50mm 12-25mm HCFeMn 3-12mm 0-3mm

From the size of 40-100mm, 80.40% of high carbon Ferro manganese is generated and from the size of 25-50mm, 9.10% is generated in the company. The generation of ferro alloys declines as sizes go downwards. Total 97% production of high carbon ferro manganese is generated from raw materials.

Generation

36

Silicon Manganese (SiMn) Size 25-50mm 12-25mm 3-12mm 0-3mm Total Yield Percent Generation 78% 9.50% 5% 1% 93%

Silicon Manganese
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 25-50mm 12-25mm SiMn 3-12mm 0-3mm

From the size of raw materials 25-50mm, 78% silicon manganese is generated and from the size of 12-25mm 9.50% is generated. Total generation of the silicon manganese is 93% from its raw materials.

Generation

37

Medium carbon Ferro Manganese (MCFeMn) Size 25-50mm 12-25mm 3-12mm 0-3mm Total Yield Percent Generation 80.40% 10% 3% 1% 94%

Medium Carbon Ferro Manganese

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 25-50mm 12-25mm MCFeMn 3-12mm 0-3mm

Total generation of the medium carbon Ferro manganese is 80.40% from the raw materials.

Generaiton

38

a) Sales to SAIL Units MEL is selling high carbon Ferro Manganese and Silico Manganese as per the requirement of SAIL. Manganese and standard size 40-100/25-10 for HCFeMn and 25-50 for SinMn. The materials that are sold to SAIL plant based on agreement between MEL & BSP who is the main coordinator of the SAIL unit BSP issues an order and order to MEL as per the requirement of quality & the size & MEL receive the product according to the requirements. The integrated steel plant of SAIL as follows. 1. Bhilai Steel Plant (MP). 2. Bokaro Steel Plant (BIHAR). 3. Rourkela Steel Plant (ORISSA). 4. Durgapur Steel Plant (WEST BENGAL). 5. Salem Steel Plant, (TAMIL NADU). b) Sale to Non SAIL Units MEL supplies near about 10% of production to non SAIL units. There are various sources from which the market information is gathered. Some of them are listed below. 1. From Agent, Dealer, Stockiest. 2. Magazines, Trade Journals. 3. Purchase in the production unit. 4. Direct from companies. As per the information MEL fixes the prices on 1st of every month through the pricing committee. The rates are displayed on notice board and communicated to all respective consumers. The size is universally accepted by the most of the private sector & also a regular size for export.

39

There are two types of tendering procedure for sale of product:a. Open Tender Procedure b. Limited Tender Procedure a. Open Tender:When the value of the product is much more i.e. above 5 crores& it is felt that higher could be sought. Company goes for open tender procedure. The tender notice contain the type of materials, prices, date of opening & closing the tender. Security deposit is advertised in regional as well as national newspaper. The tenderer has to earnest money deposit (EMD) with the tender. The filled in tender have received from them in scaled envelopes and kept in the box up to the due date. The tenderer have to bid the price of required material. There are two envelopes taken. The first one contain earnest money deposit & must be checked first at due date in the presence of committee & the second envelope is opened after taking sign of the any one of the tenderer & check the price bidding of every tenderer. The issue tender to H1 price bidder by receiving the payment in advance of the material & also the same procedure carried out in limited tender. But the material is to be sold in short time to some reliable customer. Opening of tenders are made by the committee constituted from the members of the finance, yard & marketing department is appointed. The tenders are open on due date at the presence of tenderer. b. Limited Tender:Limited tendering procedure is followed when the material value is less &productis to be sold in short time & some reliable customers are already known about product. In such a case the tenders are issued to the reliable customer then the tendering procedure is followed.

40

4. SALES PROCEDURE IN MEL The sales procedure in MEL is very systematic and price fixation is done in every month by the committee of management. . Direct Marketing:1. In direct marketing consumer directly approaches issues the purchase order to the marketing department. The purchase orders include product specification, product size quantity required & price, taxes etc. 2. After the receiving of purchase order marketing executives advices the product handling yard department for keeping the material ready. 3. When the consumer satisfies about require product specification then the pay total amount of product. Total amounts include the cost of product, sales tax and excise duty (if the product is excisable duty). 4. Then the sales executives issues sales cum delivery order. 5. With the sales cum delivery order consumer contact to product handling yard department where they get delivery of material. 6. Then they have to arrange the transportation and outward gate pass from the security office. 7. After having weighed the truck as carrier for its gross weight and fair weight and match the net product quantity with that mention in the sales order. 8. With the submission of delivery advice note invoice copy at security office the carrier are allowed to take out of company campus. This procedureis for selling the product to non SAIL parties and the SAIL unit. The sales product is takes place in the same way as per the contract.

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5. CUSTOMER SERVICES MEL provides customers services to its customers. The company solves complaints regarding qualities and other defeats if occurred. It provides corrective action to keep customers satisfied. The regular customers of the MEL directly reach to the company for their requirements. Hence MEL very much concentrating on providing better customer service. Every month material is offered to regular customers who have been associated with the MEL for the number of years. Details for solving of customers complaint:1. Recording of customer complaints:a. All the complaints related to product dispatches & relevant to SAIL & Non SAIL plant. b. Written or verbal complaint shall be recorded in registers. c. Marketing department study the nature of complaints. 2. Customer complaint committee:The committee of representative of all departments is formed to find out the solution of the complaints of the customer. The representatives are of following department. a. Head of department of central laboratory. b. Section in charge Product handling yard. c. Section in charge marketing. 3. Procedure for resolving complaints:a. Nature of complaints. b. Identification of problem. c. Collection of relevant data. d. Customer complaints committee discusses the details about complaints. e. Based on the recommendation,Head of department of customer complaints committee will arrange future course of action. f. Detail of action taken in complaints register.

42

4. Criteria for resolving customer complaints:Customer complaint will be treated as closed by any one of criteria: a. If the same customer approach for against purpose. b. If the customer does not respond against course of action take within one month. c. If the complaint is repetitive in nature which is uncertain according to customer complaints committee. 5. Corrective & Preventive Action:After the detail discussion of customer complaints, committee takes final decision to resolve complaint. 6. Review:The committee has to take periodic review of complaints, sothat there should be proper system of resolving complaints. 7. Documentation:After total closing of the complaints, documentation is takes place for making the proper records of the complaint.

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CHAPTER-4

44

CHAPTER-4 CONCEPTUAL BACKGROUND OF STUDY

MARKETING RESEARCH Marketing research can be broken down into two distinct words marketing and Research. We have to understand each of the two components Marketing and Research to know what Marketing Research is all about. Marketing is essentially a sum total of two entities, viz. the target market and the marketing mix for the market, which in turn is related to action regarding the four Ps viz. Product, Price, Place and Promotion. Thus, marketing is some human activity directed at satisfying needs and wants through exchange process and a modern marketing system cannot exist without efficient producers and affluent consumers. Research is an activity solving problem. It is an endeavor to discover, and develop knowledge aiming for progress. The testing validity of existing phenomena cannot be possible but for research. Research is, the manipulation of things concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that a process involving a series of steps to collect and analyze the information needed for decision in the desired filed of enquiry. If it is in the field of sociology it is termed as social research and if it is in the field of marketing it is known a Marketing Research. According to Philip Kotler, Marketing Research is the systematic design, collection, analysis and reporting of data, and finding solution relevant to specific marketing situation facing the company. Marketing Research is undertaken to guide managers in their analysis, planning, implementation and control of programmer or satisfy customer and organizational goals. In the words of Blankenship and Doyle, Marketing Research is the collection and implementation of facts that help marketing management to get products more efficiently into the heads of the customer. Marketing Research encompasses all the information pertinent to this task, all the appropriate techniques. American Marketing Association defines marketing research as, the systematic gathering, recording, and analysis of data about problems relating to the marketing of goods and services. Green and Tull have defined marketing research as the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing.

45

From the above definition, following fundamental characteristics of marketing research can be derived: Marketing research is an objective and systematized body of knowledge. It involves collection, recording, analysis, interpretation and reporting of some relevant information. Provides more efficient marketing of goods and services to consumers. It is concerned with problems relating to products, markets and methods of sales and distribution. Deals with present and potential consumers as well as the changing marketing environment. Provides regular and reliable information about the product, its market and the potential consumer to the management so as to chalk out appropriate marketing strategy. There can be both intra and extra resources for collection of information. It provides information for decision making and to develop new knowledge. Marketing research is an attempt to find justified solutions to marketing problems. Objectives of Marketing Research: To define the probable market for the product. To know and report the market conditions and techniques, buying behavior, buying power of customers. To assess competitive strength of various marketing policies. To forecast the market share and future sales. To know the impact of promotional efforts. To estimate the potential buying power in various areas. To indicate the distribution methods best suited to the product and the market. To study the requirements regarding the features of the product. To identify marketing opportunities or problems. To help select the right course of action.

46

Types of Marketing Research:Marketing research provides adequate information to the line management. In the days of specialization, various types of marketing research are adopted. Each type of research is tailored to the individual needs of the management. There are seven major types of Marketing Research:1. Marketing Performance Research 2. Product Research 3. Promotion Research 4. Distribution Research 5. Pricing Research 6. Research on Sales Methods 7. Research on Competition All these Researches are interrelated and one cannot consider one research as totally different from the other. In actual practice, a given marketing research problem may impinge on more than one subject. 1. Marketing Performance Research:Marketing performance research provides information necessary for management to plan and control the performance of the marketing efforts. This research is primary concerned with the identification of problems and their solution. In this research a performance standard is fixed to gauge the marketing performance. This research is further subdivides as a. Market potential research b. Overseas marketing research c. Consumers research d. Market share research e. Sale research 2. Product Research:It is the task of product marketing research to determine consumer requirements and to keep abreast of product technical research. It is the development of a product line which meets the needs of certain group of consumers. It is further subdivides as: a. Product line Research b. Individual product research c. New product research d. Service research

47

3. Promotion Research:Promotion research is mainly concerned with the expansion-stimuli of the market. It is further subdivided as:a. Advertising research b. Personal selling research c. Brand image research d. Leadership research 4. Distribution Research:It refers to the study of the physical flow of goods from the manufacturers of the final consumers. Goods may be distributed through different channels. The main objectives of this research are a. Distribution channel research b. Dealer surveys c. Shop audit d. Retail store investigation e. Location research 5. Pricing Research:It reveals the quantity demanded at various levels of prices. It finds out the behavior of the competitors, the market shares, dealers attitude, production and marketing costs and other relevant factors. It can be subdivided asa. Pricing of new product. b. Pricing strategy of competitors. c. Prices discounts. 6. Research on sales methods:It has the following sub types:a. Testing new sales programmers. b. Analyzing problems of selling. c. Measuring salesmans effectiveness. d. Study of sales compensation. 7. Research on Competition:It involves:a. Study on competitive structure of industry and individual competitors. b. Study of competitors products, prices, promotion, programmers, channel policies and sale methods.

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CHAPTER-5

49

CHAPTER-5 DATA ANALYSIS AND INTERPRETATION

Production Review:The company production of different grades of Ferro alloys was as under: 2010-11 2009-10 Material Quantity (MT) Quantity (MT) High Carbon Ferro Manganese 64584 68789 Silico Manganese 37640 35640 Medium Carbon Ferro Manganese 1941 1763 Company operated furnace II for ten months for Silico Manganese production. In order to meet enhanced demand for SAIL plants, furnace I was operated for producing Ferro Manganese for twelve months and furnace II for two months for production of Ferro Manganese.

Production
80000 70000 60000 Quantity 50000 40000 30000 20000 10000 0 High Carbon Ferro Manganese Silico Manganese 2010-11 Medium Carbon Ferro Manganese

2009-10

Interpretation: The production of high carbon ferro manganese during 2009-10 is 64,584mt and the production during 2010-11 is 68,789mt. There is an increase in the production of HCFeMn in 2010-11 compare to the year 2009-10. Production of silico manganese decreased in the year 2010-11 compare to 2009-10. Production of medium carbon Ferro manganese decreased in the year during the year 2010-1011 compare to 200910

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Sale& Marketing Review:a) SAIL Steel Plants:During the financial year 2010-11 the company continued conversion arrangements with SAIL. Steel plants in order to secured market, vigorous efforts were made by the company to find market outside SAIL. Dispatches of Ferro Alloys to SAIL steel plants under conversion arrangement and direct sales during the years were as under. 2010-11 2009-10 Material Quantity (MT) Quantity (MT) High Carbon Ferro Manganese 59129 61015 Silico Manganese 32197 29662 Medium Carbon Ferro Manganese 1554 1488

SAIL Steel Plant

70000 60000 50000 Quantity 40000 30000 20000 10000 0 High Carbon Ferro Manganese Silico Manganese 2010-11 Medium Carbon Ferro Manganese

2009-10

Interpretation: Sale of high carbon ferro manganese in the year 2009-10 is 59,129 and the sale in the year 2010-11 is 61,015mt to the SALE steel plants. The sale of silico manganese in the same year is 32,197mt and 29,662mt respectively. The sale of medium carbon ferro manganese in the same year is 1,554mt and 1488 respectively.

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b) Other Customers:The company continued to achieve a growth in terms of sales realiasation through sale Ferro Alloys to customers other than SAIL plants. The detail of sales performance in 2009-10& 2010-11 are as under 2009-10 Quantity Value (MT) (Rs.) 8504 4918.45 7525 3795.68 237 218.62 16266 8932.75 2010-11 Quantity Value (MT) (Rs.) 3127 2122.95 4710 2785.43 16.00 22.88 7853 4931.26

Material High Carbon Ferro Manganese Silico Manganese Medium Carbon Ferro Manganese Total

Other Customers
18000 16000 14000 12000 10000 8000 6000 4000 2000 0 High Carbon Silico Manganese Medium Carbon Ferro Manganese Ferro Manganese 2009-10 2010-11 Total

Interpretation: The sale of high carbon ferro manganese to other companies is 8,504 mt in the year 2009-10 and the sale during the year 2010-11 is 3,127mt.The sale of silico manganese in the same year is 7,525mt and 4,710mt respectively. The sale of medium carbon ferro manganese in the above year is 237mt and 16mt respectively.

Quantity

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1) Which is the most suitable product among the following ranges as per the

companys requirement? No of Respondent High Carbon (FeMn) 6 Low Carbon/Medium Carbon (FeMn) 2 Silico Manganese (SiMn) 2 Percentage 60 20 20

Products
70 60 50 40 30 20 10 0 High Carbon (FeMn) Low Carbon/Medium Carbon (FeMn) Silico Manganese (SiMn) 20 20 Percentage 60

Interpretation: High carbon ferro manganese is the most preferred product than low carbon ferro manganese, medium carbon ferro manganese and silico manganese.

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2) Since how long you have been customer of MEL?

No of Respondent Below 5 years 3 5 years-10 years 3 Above 10 years 4

Percentage 30 30 40

Company in Operation
45 40 35 30 25 20 15 10 5 0 Below 5 years 5 years-10 years Above 10 years Percentage 30 30 40

Interpretation: 40% of the companies are the customers of MEL from more than 10 years.

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3) In which category do you belong?

No of Respondent Percentage Processor 2 20 Trader 2 20 Manufacturer 6 60

Customers

60 50 40 30 20 10 0 Processor Trader Percentage Manufacturer

Interpretation: 60% of the customers of MEL are manufacturers.

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4) Are you satisfied with quality of MEL product?

No of Respondent Percentage Yes 7 70 No 3 30

Quality

30%

Yes 70% No

Interpretation: 70 percent customers are satisfied with quality of products and only 30 percent customers are not satisfied with quality of MEL Products.

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5) Why do you prefer MEL over its competitor?

No of Respondent Percentage Old in market 0 0 Price factor 0 0 Better customer service 3 30 Subsidiary of SAIL 0 0 Quality 7 70

Preference aganist Quality feature

80 70 60 50 40 30 20 10 0 Old in market Price factor Better customer service Percentage Subsidiary of Quality feature SAIL

Interpretation: Because of its quality the products of the company are most preferred by its customers over its competitors.70 percent customers give preference to its products.

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6) What is the transport facility mostly used by you?

No of Respondent Percentage By rail 6 60 By road 4 40

Transpotation by Customers

By road Percentage By rail

20

40

60

Interpretation: 60% customers use transport facility of rails and 40% customers use road facility to carry the product to their company.

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7) Are you satisfied with the rate of MEL?

No of Respondent Percentage Satisfied 4 40 Not satisfied 6 60

Not satisfied Axis Title

Percentage Satisfied

20

40 Axis Title

60

80

Interpretation: 40 Percent customers are satisfied with rate of the products and 60 percent customers are not satisfied. Though the qualities of the products are good but in the matter of rate the customers want the products should be sold in a cheaper prices. The rates of the company are much higher compare to its competitors.

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8) Are you satisfied with logistic service provided by MEL?

No of Respondent Percentage Yes 5 50 No 5 50

Logistic Service

50%

50% Yes No

Interpretation: 50% customers are satisfied with logistic service of MEL and 50% customers are not satisfied with logistic system of MEL. The delivery takes more than 5-7 days that is why only 50% customers are satisfied with logistic service.

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9) What is your opinion about the discount offers which MEL present from

time to time? No of Respondent Percentage Best 2 20 Better 1 10 Good 3 30 Poor 1 10 Average 3 30

Discount Offers

30%

20% Best 10% Better Good 30% Poor Average

10%

Interpretation: In the matter of discount offers 30% customers replied as average, 30% customers replied well. The discount offers of the company examined to be good to some extent. The company gives discount offers to its regular customer.

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10) What is your experience about the after-sales-service?

No of Respondent Percentage Best 2 20 Better 2 20 Good 3 30 Poor 1 10 Average 2 10

After Sales Service

30 20 10 0 Best Better Good Percentage Poor Average

Percentage

Interpretation: 30% customers found that the after sales service is good and 20% customers found that better, 20% replied best, 20% replied average, and 10% replied that the after sale service is poor. So the companys after sales service isgood.

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CHAPTER-6

63

CHAPTER-6 FINDINGS AND SUGGESTIONS

Findings:1. High carbon ferro manganese is the most preferred product than medium carbon, low carbon ferro manganese and silicon manganese. It is found that high carbon ferro manganese has a good quality so it is mostly preferred by customers. 2. Many companies are in the operation for a long time with MEL. Above ten years are 40%, 5-10 years 30%, below five years are 30%. 3. The customers of MEL are mostly manufacturers compare to trader and processor. They are involved in manufacturing business such as industrial products and some are involved in processing such as ferro boron, ferro powder. 4. It is found that most customers of the company are satisfied with the quality of MEL. 70% customers are satisfied with quality of products and only 30% customers are not satisfied with quality of MEL. 5. The quality of MEL products are good because of its quality customers choose MEL product compare to its competitors. 6. Many MEL customers use rail facility to get manganese to their companies. 7. The rates of the company are much higher compare to its competitors. 8. The delivery takes more than 5-7 days that is why only 50% customers are satisfied with logistic service. 9. The discount offers of the company examined to be good to some extent. The company gives discount offers to its regular customers. 10. The system of after sale services of the company is good. The company is providing complaint handling system so most customers are satisfied with after sale services. The company has a complaint handling committee.

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Suggestions:1) In Chandrapurarea where MEL is situated, there are companies other than subsidiary of SAIL which can be targeted to increase sales.. 2) More emphasis should be given on the direct marketing. 3) Various new competitors are also entered in this market. Company should have competitive strategy plans to cope with these new entrants. 4) There is opportunity to tap the Non SAIL units and these opportunities should be converted into the companys strength. 5) The company should be little flexible in pricing strategy. 6) Major and old customers should be given more importance. 7) More focus should be given on timely supply of the product to the customers.

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CHAPTER-7

66

CHAPTER-7 CONCLUSION
The ultimate aim of every production in this fast moving world and changing environment efficient marketing strategy is very essential for the betterment of the company. Good marketing strategy can provide profitability to the industry. Efficient strategy can help the industry to boost up its image in the eyes of customers. Efficient marketing strategy leads to the customer satisfaction. Direct marketing also plays an important role in success of industrial product in the market.Direct marketing also plays an important role to attract the small scale industrial customers. Most customers of MEL are manufacturers. Products of MEL are expensive compared to the competitors but quality is good. The customers are getting the proper service during the purchase of required products. It is found that sometime delivery takes much time. The customers are getting good after sales service. The company is providing customer complaint handling system by committee. It is found that most of major customers who are mainly quality conscious prefer Maharashtra Elektrosmelt Limited products. It is understood that Maharashtra Elektrosmelt Limited is the market leader in the Vidharbh market. Old buyers of Maharashtra Elektrosmelt Limited are aware of its product and are satisfied but for the new customers there is a need of certain kind of awareness programs to be carried out. Quality of Maharashtra Elektrosmelt Limited products are perceived as the best by the customers.

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68

BOOKS: Research Methodology by C.R. KOTHARI. Marketing Research by RAJENDRA NARGUNDKAR. Marketing Management by PHILIP KOTLER. STEEL INSIGHTS guide to steel buyers. WEBSITES: www.sail.co.in www.moneycontrol.com

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ANNEXURE
QUESTIONNAIRE USED IN RESEARCH
1) Which is the most suitable product among the following ranges as per the

companys requirement? a. HIGH CARBON FeMn ( ) b. LOW CARBON / MEDIUM CARBON FeMn ( ) c. SILICO MANGANESE-SiMn ( )
2) How long has the company been in operation?

a. Below 5 years ( ) b. 5 years-10 years ( ) c. Above 10 years ( )

3) In which category do you belong?

a. b. c. d.

Processor ( ) Trader ( ) Manufacturer ( ) Other ( )

4) Are you satisfied with quality of MEL product?

a. Yes ( ) b. No ( )
5)

Why do you prefer MEL over its competitor? a. Old in market ( ) b. Price factor ( ) c. Better customer service ( ) d. Subsidiary of SAIL ( ) e. Quality feature ( )

6) What is the transport facility mostly used by you?

a. By rail ( ) b. By road ( )
7) Are you satisfied with the rate of MEL?

a. Satisfied ( ) b. Not satisfied ( )

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8) Are you satisfied with logistic service provided by MEL?

a) Yes( ) b) No( )
9) What is your opinion about the discount offers which MEL present from time

to time? a) Best ( ) b) Better( ) c) Good ( ) d) Poor( ) e) Average( )

10) What is your experience about the after-sales-service?

a) b) c) d) e)

Best ( ) Better ( ) Good( ) Poor( ) Average( )

11) Yourvaluable suggestions to improve service.

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